New York law firm Pomerantz has filed a class action lawsuit against Credit Suisse, over claims the Swiss bank misled investors as to its dealings with Russian oligarchs.
The lawsuit comes after shares in Credit Suisse dropped 2.58 per cent on 28 March, in response to reports claiming the investment bank has carried out extensive dealings with Russian kleptocrats.
The class action lawsuit claims Credit Suisse made “materially false and misleading statements” by failing to disclose the risks associated with its practice of lending money to Russian oligarchs.
Pomerantz’ claims come after the US House of Representatives told Credit Suisse to hand over information regarding loans paid out to those using yachts and private jets as security.
The letter sent to Credit Suisse by the US House of Representatives also raised concerns about the bank’s request that its investors “destroy documents” offering details of yachts and private jets owned by the bank’s clients.
The letter raised concerns that Credit Suisse may be “concealing information” about its clients evading sanctions.